TT electronics sells Ottomotores

Ottomotores, based in Mexico and Brazil, provides secure power solutions to customers primarily in Mexico and other markets in Latin America. The sale is subject to certain conditions commensurate with a transaction of this nature, including approval from competition authorities in Mexico. Completion of the disposal is expected to take place before the end of January 2013. All personnel employed by Ottomotores will transfer with the sale. Under the agreement, Generac will pay consideration of $46.5m (£29.2m) in cash, subject to an adjustment based on the balance sheet at completion including assumed debt. For the year ended 31 December 2011, the underlying operating profit for Ottomotores was £3.7m on revenue of £50.9m and the value of gross assets at 31 December 2011 was £39.4m. Commenting on the disposal, Group Chief Executive, Geraint Anderson said: "The sale of Ottomotores will bring to a successful conclusion the disposal of the operations which previously comprised the Group's Secure Power division and is in line with our strategy to realise value from businesses that are non-core. It leaves us focused on our electronics divisions supplying leading manufacturers in the defence, aerospace, medical, transportation and industrial markets. We intend to deliver value to shareholders by investing for growth in the business and continuing to drive margin progression."